Expect auto ancillaries like tyres to catch up towards festive season and on exports: Prakash Diwan

In a chat with ET Now, Prakash Diwan, Director, Altamount Capital Management, shares his views on MRF and auto ancillaries like tyres. Excerpts:

ET Now: A lot of things, which are not on the investors radar, are finding favour like rubber or tyres as commodities. What is your view on that?

Prakash Diwan: This is a classic example of sector rotation. The numbers that we are seeing on the auto sales are not disappointing.

We had a couple of bad months but if you look at a build up towards the festive season as well as on the exports, things have started looking up for auto ancillaries including tyres. So tyres have actually had a late catch up of sorts; it is a valuation drive that is pulling things more on on the fundamentals.



ET Now: Do you like an MRF stock at Rs 14500-odd value?

Prakash Diwan: I do not see that kind of a headroom that MRF could give for any people to get in at this stage.